With Technical Rebound Today, Most Major Indices Still Look Bearish

A selloff in the last hour of trading sent U.S. equities into the red, closing out a month that was also in negative territory. In today’s session, the Dow lost 0.7%, while the S&P 500 and Nasdaq had smaller declines. For the month, the Dow Jones plunged 4.2%, the S&P 500 dipped 2.6%, and the Nasdaq Composite fell 1.1%.

U.S. consumer confidence saw a surprise decline in February. The Conference Board Consumer Confidence Index fell, for the second month in a row, down to 102.9 in February from 106.0 in January. A measure of expectations, which reflects consumers’ six-month outlook, saw a 69.7 drop, the lowest since July, while the gauge of current conditions climbed to 152.8. However, and critical for the economy, spending is likely to remain supported, with the Conference Board survey showing the share of consumers viewing jobs as "plentiful" rising back to levels seen in the Spring of 2022.

Meanwhile, Goldman Sachs (GS) was the biggest drag on the Dow yesterday, with shares off 3.8%, as CEO David Solomon told an investor conference the bank was considering strategic alternatives for its consumer business. Healthcare sector was particularly under siege. Shares of Merck (MRK) dropped almost 3%. Shares of Amgen (AMGN), Chevron (CVX), Johnson & Johnson (JNJ), Procter & Gamble (PG), and UnitedHealth Group (UNH) all lost more than 1%.

Earningswise, Target Corporation (TGT) quarterly total revenue grew 1% to $31.40 bn vs $30.72 bn expected. Adjusted diluted EPS came in at $1.89 vs. $1.40 expected. Brian Cornell, Chairman and CEO, said, “We're pleased that our business delivered comparable sales growth in the fourth quarter, in what continues to be a very challenging environment. Strength in Food & Beverage, Beauty and Household Essentials offset ongoing softness in discretionary categories.”

Two of the larger economies in the Eurozone, France and Spain, saw a surprise spike in consumer prices in February. The Harmonised Index of Consumer Prices (HICP) in France rose by 7.2% from the previous year, driven by the rise in food and services prices. Meanwhile, the flash estimate of the Consumer Price Index for February jumped 6.1% in Spain.

Notwithstanding, European indexes are trading higher this mid-afternoon amid an influx of economic data. The United Kingdom already reported an annual house price drop in February, as investors in London now focus on the pace of the country's mortgage approvals, and manufacturing activity (PMI). The European Union will reveal its own PMI, as well as Germany, which will also add inflation and unemployment rate updates.

Meanwhile, at the time of writing, The German DAX edged higher 0.64%, as Siemens (SIE.DE) advanced 1.78%. The British FTSE 100 gained 0.67%. The best performer was Rio Tinto (RIO.L), as its shares jumped 4.32%. The French CAC 40 advanced by 0.23%, with ArcelorMittal (ARRD) gaining 2.35%. The Euro Stoxx 600 rose 0.26%, as Prosus (PRX) pulled the index up by 5.55%.